By Devika Patel
Knoxville, Tenn., March 30 - Pyramid Petroleum Inc. said it will sell C$15 million of convertible debentures.
The debentures mature in four years. They have a coupon ranging between 8% and 40%, paid quarterly based on an index of oil and gas prices; the first coupon payment will have an interest rate of 12%.
The debentures are convertible into common shares at C$0.85 per share.
Research Capital Corp. is the lead agent. There is a C$5 million greenshoe.
Proceeds will be used to fund development drilling, work-overs and acquisitions of additional working interests in Pyramid's existing wells and for working capital.
Pyramid is a Calgary, Alta.-based oil and gas exploration and production company.
| Issuer: | Pyramid Petroleum Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$15 million
|
| Greenshoe: | C$5 million
|
| Maturity: | Four years
|
| Coupon: | Variable
|
| Price: | Par
|
| Yield: | Variable
|
| Conversion price: | C$0.85
|
| Agent: | Research Capital Corp. (lead)
|
| Pricing date: | March 30
|
| Stock symbol: | TSX Venture: PYR
|
| Stock price: | C$0.29 at close March 27
|
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